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Wall Street ends 2025 near record highs after year of economic upheaval

about 9 hours ago
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Wall Street finished 2025 near record highs on Wednesday, as ballooning tech valuations and hopes of lower interest rates helped stock markets defy a year of economic uncertainty.The benchmark S&P 500 rose 16.4% over the course of the year, closing at 6,845.50 on New Year’s Eve in New York, as investors largely shrugged off geopolitical uncertainty and the frenzy around artificial intelligence continued.It fell 0.

7% during Wednesday’s trading session.Other global indices had an even stronger year.In London, the FTSE 100 enjoyed its biggest annual gain since 2009, advancing 21.5%.The Dow Jones Industrial Average gained 13.

4% during 2025,The tech-focused Nasdaq Composite rallied 20,5%,Donald Trump’s aggressive plan to impose sweeping US tariffs on imports from across the world spooked investors in the spring but acute anxiety gave way to a stubborn cynicism around the so-called “Taco” trade: Trump Always Chickens Out,While the US president did roll back some tariffs in response to concerns over their impact on American consumers and businesses, tariffs have surged to the highest average effective rate since 1935.

The longest US government shutdown in history also shrouded the economic landscape in a further layer of fog, as inflation held firm, jobs growth stalled, and the Federal Reserve weighed highly-anticipated decisions on rates.But the wider market was buoyed by a sustained rise in tech stocks, driven by enormous interest in the potential of AI.Fears of an emerging bubble in tech valuations loom large.The entire Nasdaq has surged by more than 110% since OpenAI introduced ChatGPT in November 2022, sparking a sharp increase in interest surrounding the possibilities presented by AI.At the heart of the rally is Nvidia, the top chipmaker, which this summer became the first public company in history to scale a $4tn market value, amid a stratospheric increase in its stock price.

It finished the year up 34.8%, with a valuation of $4.55tn.The S&P 500 – dominated by tech stocks like Nvidia; Apple; Microsoft; Amazon; and Alphabet, owner of Google and YouTube – enjoyed its third consecutive positive year in 2025, albeit with its weakest growth of the three.Analysts broadly expect more of the same in 2026, having issued relatively optimistic market forecasts for the year ahead.

A further climb is likely to please the president,Despite his protests, Trump appears to monitor the market closely, and regularly cites strong rallies as evidence of a strong economy on his watch,But many Americans remain apprehensive about the economic outlook,Twice as many Americans believe their financial security is getting worse than better, according to a Harris poll for the Guardian,And the stock market rally has disproportionately benefited the wealthy, leading some economists to refer to a “K-shaped economy” that is deepening inequality and has left those without investment portfolios feeling left behind.

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Jose Pizarro’s recipe for caramelised brussels sprout and panceta montaditos

Brussels sprouts are perhaps not the first thing you think of when you think about Spanish food, but they do have a little history in my homeland. They arrived in Spain in the 16th century, through trade with Flanders, and were often paired with pork, which we love. Here, however, I caramelise them with onion, thyme and sweet vinegar, then serve on crisp baguette with soft cheese and pine nuts. A small bite with big flavour, and just right with a glass of oloroso – perfect for festive times.Prep 15 min Cook 35 minMakes About 20 canapes1 tbsp olive oil 125g sliced panceta (Spanish bacon), or pancetta, finely chopped1 medium onion, peeled and finely sliced1 garlic clove, peeled and finely sliced300g brussels sprouts, finely sliced3 sprigs fresh thyme, leaves stripped2 tbsp sweet apple vinegar 2 tbsp soft light brown sugar Salt and black pepper 20 slices fresh baguette 150-200g soft curd cheese, whipped, or whipped cream cheese50g pine nuts, toastedHeat the oil in a large frying pan, then fry the chopped panceta for about five minutes, until golden and crisp

2 days ago
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Tasting 291 Australian supermarket products has taught me there’s no correlation between price and deliciousness

After a year of taste tests, Nicholas Jordan has learned never to judge a food by its packet – including the cooking instructionsImagine going to a work Christmas party and being greeted not by your current workmates and bosses but by everyone you’ve ever worked with. Imagine the mix of dread, nostalgia and excitement that would bring on. That’s how I feel every time I walk into Coles Broadway.After trying 291 supermarket products for 14 taste tests this year (one more than last year’s haul) I feel as if I know all the characters in there and, despite only having relatively short interactions with many, I have strong opinions about all of them.I want to tell everyone my opinions but supermarkets aren’t particularly welcoming places for giddy soap-box speakers

3 days ago
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Drinks ideas to get your NYE party fuelled

Oh, you thought it was all over? After all the carolling, gifting and tree-ing (not to mention the eating and drinking) of the actual Christmassy bit, it feels almost cruel to have to do it all again, and on – in my opinion – one of the most stressful nights of the year: New Year’s Eve.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.If you’re not paying over the odds and going out, with long queues and stressed-out staff, you’re the stressed-out one yourself

3 days ago
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Georgina Hayden’s quick and easy recipe for pimento cheese and pickle loaded crisps | Quick and easy

Pimento cheese, a much-loved American spread, has been a permanent fixture in my kitchen this month. Whether it’s a quick sandwich filling in times of chaos or an effortless party dip, I am addicted. My favourite way to serve it, though, is as part of a loaded crisp platter. Use salted or pickle crisps, and load them up with spoonfuls of pimento cheese, sliced pickles, herbs and heat. Move over nachos, there’s a new crisp platter in town

3 days ago
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Ten things I love (and hate) about restaurants in winter

As the wildly popular social media platform celebrates its 10th year, we ask the Topjaw frontman what he loves – and hates – about eating out during the festive season.PiesI love pies. I scoff when people ask: “What is British cuisine?” First, we have the most diverse culinary scene on the planet, with great Asian and Mediterranean food everywhere. And, second, what even is British cuisine?! A pie is one of the greatest dishes ever created. Think a chicken, rabbit and tarragon pie, with good 50:50 butter:potato mash and really good gravy

4 days ago
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‘Many over-hyped London restaurants left me cold’: Grace Dent’s best restaurants of 2025 | Grace Dent on restaurants

For reasons that may already be apparent, and that are currently playing on BBC One, I have spent much of 2025 watching people cook scallops and souffles in a windowless television location unit in Digbeth, Birmingham. MasterChef, despite being one of the most exhilarating jobs a girl can do, sucked up most of my waking hours this year, and made my free time extra-precious. So the very best restaurants I found this year – those with zinging hospitality and heart-thumpingly good food – became equally extra-crucial.I’m talking about the likes of Tropea in Harborne, just down the road from the TV studio, and where I’ve spent a fair few Saturdays eating butternut squash arancini, fresh tagliolini and whopping great deep-fried salted cannoli. Over in Bristol, meanwhile, two absolute gems revealed themselves on the very same trip: Ragù and Lapin, both in Wapping Wharf and both in repurposed shipping containers, but entirely different creatures

4 days ago
cultureSee all
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The best films of 2025 … you may not have seen

4 days ago
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‘I once Bogarted a joint from a Beatle’: Stewart Copeland of the Police

4 days ago
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From Central Cee to Adolescence: in 2025 British culture had a global moment – but can it last?

5 days ago
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The best songs of 2025 … you may not have heard

5 days ago
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The Guide #223: From surprise TV hits to year-defining records – what floated your boats this year

5 days ago
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My cultural awakening: a Turner painting helped me come to terms with my cancer diagnosis

5 days ago